Luxury Home Prices Continue to Rise

Seattle, WA, February 4, 2026-The median luxury home sale price in America rose 4.6% year over year to $1.31 million in December, according to a new report from Redfin. By comparison, non-luxury prices rose 1.4% to $375,000-the slowest growth in records dating back to 2013.

Luxury home prices fell in just two metros: Fort Worth, TX and Portland, OR.

Luxury home prices are rising not because demand is high, but because affluent buyers are competing over the few homes on the market that everyone wants, said Alin Glogovicean, a Redfin Premier real estate agent in Los Angeles. 

“Homebuyers are very selective because prices and mortgage rates are high-they want a house that has everything. Even super-wealthy buyers are hesitant to pull the trigger because there’s not a lot of great inventory, and they don’t want to settle,” Glogovicean said. “We’re seeing bidding wars on the few homes that are desirable, which is driving up prices. If you list your house for $2.9 million and it’s in really good shape and in a desirable location, you might sell it for $3.3 million and get a buyer who pays cash and waives contingencies.”

Pending sales of luxury homes fell 1.1% year over year in December-the biggest decline in six months. By comparison, pending sales of non-luxury homes fell 0.6%, the largest decline in eight months.

Closed sales of luxury U.S. homes-a more backward looking metric-rose 0.4% year over year. That compares with a 0.7% decrease for non-luxury homes.

Active listings of luxury homes for sale increased 5.6% year over year in December-the slowest growth since April. Non luxury listings rose faster-7%-though that was the slowest growth since February 2024. Supply growth is likely slowing because homebuyer demand is sluggish.

New listings of luxury homes climbed 2.9%, compared with a 2.4% decline in non-luxury new listings.

The typical luxury home that went under contract in December took 64 days to do so, up five days from a year earlier and the slowest December pace since 2020. Meanwhile, the typical non luxury home took 50 days to go under contract, up six days from a year earlier and the slowest December pace since 2019.